Premier Energies raises Rs 846 crore from anchor investors ahead of IPO

Solar cell and module maker, Premier Energies Ltd, has raised Rs 846 crore from anchor investors, a day ahead of the opening of its initial public offering for public subscription.

The money has been mobilised by issuing 1.88 crore equity shares to 60 anchor investors at Rs 450 per share, the circular said on the BSE website. Marquee investors include Nomura Funds, Abu Dhabi Investment Authority, HDFC Mutual Fund, ICICI Prudential MF, Axis MF, Kotak MF, Nippon India MF, Sundaram MF, and UTI MF.

The company will raise Rs 2,830 crore from the IPO and the offering will be open from August 27 through August 29. The price band of the issue has been fixed at Rs 427-450 per share. The offer comprises a fresh issue of equity shares aggregating to Rs 1,291.4 crore and an offer for sale of up to 3.42 crore shares, amounting to Rs 1,539 crore at the upper price limit.

In the OFS segment, South Asia Growth Fund II Holdings LLC plans to divest 2.68 crore shares, South Asia EBT will offload 1.72 lakh shares and promoter Chiranjeev Singh Saluja will sell 72 lakh shares.

"The proceeds from the fresh issue, around Rs 968.6 crore, will be used to invest in its subsidiary company-Premier Energies Global Environment Pvt Ltd-for part financing the 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility that is coming up in Hyderabad, apart from general corporate purposes.".

Premier Energies is an integrated solar cell and module manufacturing company with 29 years under its belt. It is based in Hyderabad and has five manufacturing facilities. The annual installed capacity for solar cells and solar modules is 2 GW and 4.13 GW, respectively. The revenue from operations for FY24 stood at Rs 3,143 crore, compared to Rs 1,428 crore in the previous fiscal year.

The book-running lead managers to the issue are Kotak Mahindra Capital Company Ltd, J P Morgan India Pvt. Ltd, and ICICI Securities Ltd.